Tuesday, November 06, 2001
Mumbai, Nov 5: Hughes Software and Hughes Tele.com (India)
on Monday sought a weeks time from the Securities and Exchange
Board of India (Sebi) to furnish details on the possible impact
of the merger of US-based Hughes Electronics Corporation (HEC)
with EchoStar Communication Corporation
(ECC).
The details, when furnished, would help Sebi understand the
exact impact of the amalgamation/merger of HEC with ECC and
the subsequent impact on Indian companies. In turn, Sebi would
then be able to say whether, or not, the foreign parent should
make an open offer for Indian shareholders in Hughes
companies.
Sebi had called the companies on Monday to clarify on the
impact of the amalgamation of these two companies on the Indian
companies promoted by HEC. The companies, through a letter
sent today, sought some more time to furnish details and clarification
on the subject, said a top Sebi source.
Last month, Hughes Software and Hughes Telecom (India) had
in a letter to the stock exchanges informed that there was
no intimation (from the US company) to acquire Indian shares
(in Hughes Software and Hughes Telecom), because this was
an amalgamation and not an indirect acquisition of Hughes
Electronics by ECC.
This communication has left the Indian shareholders of Hughes
Software and Hughes Tele.com (I) confused as they had expected
an open offer from the US acquirer. Accordingly, the share
prices of both these companies have been rising.On Monday,
Hughes Software closed Rs 17.90 up to Rs 252.70, on a volume
of 11.68 lakh shares. On October 31, the stock closed at Rs
212.65. Hughes Tele.com (I) closed on Monday at Rs 8.30, up
marginally by Rs 0.20 on a relatively small volume of 12,853
shares. On October 31, the stock was quoting at Rs 8.20. According
to latest annual report of Hughes Software, the holding company,
through its subsidiaries holds 1,86,66,666 shares, or 55.73
per cent of the companys total equity.
Following the announced merger of HEC with EcoStar, there
was change in the management of Hughes group of companies,
and accordingly, in the management of Indian companies. Both
these companies have called an EGM to seek shareholders approval
of the possible change in managemnet in the Indian
companies. This has led the shareholders of both these companies
to expect that the acquirer would make an open offer to the
Indian companies.
Last updated : February 2, 2004
|
